Events:
According to the company's three-quarter report, in the first three quarters, the company achieved operating income of 2.7 billion yuan, an increase of 4.9% over the same period last year, and a net profit of 330 million yuan, an increase of 43.64% over the same period last year. Of this total, the operating income in the third quarter was 887 million yuan, an increase of 13.66 percent over the same period last year, and the net profit was 99 million yuan, an increase of 25.14 percent over the same period last year.
Comments:
1. Financial expenses increased slightly in the third quarter. Due to the impact of exchange rate fluctuations, the financial expenses in the third quarter were 36 million yuan, an increase of 47 million yuan over the second quarter, and an increase of 26 million yuan over the third quarter of last year.
two。 Geothermal projects are gradually connected to the grid as planned to ensure the steady growth of the company's follow-up revenue. On the morning of August 10, 2022, the Star Peak geothermal project acquired by the company's wholly-owned subsidiary Open MountainEnergy,LCC completed the test of the booster station in NVEnergy, successfully merged into the NVEnergy grid and began to produce electricity. According to the previous announcement, the total power of the first phase of the Star Peak project is 12.5MW, the price of the electricity purchase agreement is 70.25USD per megawatt hour, and the duration of the power purchase agreement is 24.75 years. After being connected to the grid, it will steadily contribute revenue and profits to the company.
3. The third unit of SMGP in Indonesia was also put into commercial operation in the fourth quarter. The company's SMGP geothermal project in Indonesia has a total of 5 units, and the third unit was officially put into operation on October 7. So far, three units of the SMGP project have been officially put into commercial operation, with a total operating power of 140MW, a power purchase agreement price of US $81 / MW and a power purchase agreement of 32 years. The operation of this unit is expected to have a positive impact on the company's revenue and profits in the fourth quarter.
Profit forecast: the company's 2022-2024 net profit is expected to be 460 million, 625 million and 817 million, respectively, PE is 38 times, 28 times and 21 times, given a "overweight" rating.
Risk hint: geothermal project progress is not as expected; equipment business orders are not as expected.
